Can they report repo if we never signed loan docs?

[Anonymous]

Ok so this is kind of a shady question, and I love NFCU and don’t really want to burn them, but here’s the situation.

We bought a car several years ago, and we refinanced through navy federal in 2015. The car has been a piece of crap since the year after we bought it and we would do anything to get rid of it, but we are under water with the loan so we can’t sell it.

When we refinanced, they were supposed to send us the loan docs to sign (we don’t live near a branch), but we never received them. I forgot all about it until today when I looked at the application page, and there’s a big notification that we still need to sign the loan docs. So considering we never signed an agreement with NFCU, could we voluntarily repo the car and not have it report to our credit? I feel bad even asking this but is it a feasible option? And if so, would NFCU get rid of us as members? We have quite a few credit products with them.

[Anonymous]

I have no personal experience with this. But I’m pretty sure even you voluntarily turning it in still reports. “Voll Surrender” or something like that.

[Anonymous]

There is so much wrong here, and what's more, since you are asking complete strangers on the internet, you already know this is wrong. Figure something else out. 

From a legal strandpoint, they don't need a written contract to enforce their position, which seems to be at the crux of your argument.

[Anonymous]

I guess that was the main thing I’m wondering, is if they need a signed contract for the loan to be valid.

[Anonymous]

You entered into the contract in what's known as a course of dealing. Alternatively, an implied contract was formed when you accepted the check. Finally, this entire line of thinking is honestly despicable. Not judging here, but you set the deal up, Navy came through for you, and the best thing to counter your crappy selection of vehicle is to screw them over on some bogus technicality?? I think you can be bigger than that. You are your actions; surely you don't want this as a defining moment in your life, do you?

Perhaps watch the storm scope as hurricane season is soon approaching; maybe you can park the car in the hurricane's  path?  Or perhaps it failed to start down near the storm surge...    :-)  <--just kidding.

[Anonymous]

So I was in your situation with a motorcycle a few years back. I kinda get where you're coming from.
I forgot to mail in documents after a refinance on my motorcycle. After I defaulted they converted my motorcycle loan to a personal loan and upped the apr. Eventually it was CO and I still had the title and papers. Eventually I settled with them though. Once settled I requested for the title or a letter releasing liability to the title.

Hope this helps

[silver_idle]

Since you accepted the loan, that alone is enough to enforce the agreement (though it would be a different story if you didnt accept it). You can have them repo the car, but you will still be liable for the difference after the car is sold (or if its not sold, the whole amount). Its best to be the bigger person and not try to use the excuse of not signing loan documents as a way to escape your responsibilities. That wont hold up in court if they were to sue you, and in fact, since you didnt sign the loan documents and try to bring that up to them, they could demand the whole balance to be due right then and there. If you are having hardship talk to the lenders and see if there is any options for you. If you dont want the car, you can give it to them but that wont resolve you of your liabilities and can affect your credit. 

[RobertEG]

I would not rely upon any legal opinions solicited on a forum.

You have a contract issue for which you should obtain the opinion of an attorney.

[MyDataMyChoice]

What do you have in writing from them?

An Online Application?   

The Loan Docs DO need to  be signed for them to be able to get a judgement... get a lawyer.... 

[Anonymous]

Way to make a person feel like sh*t about a question guys. I’m just curious how all of that works when you don’t sign loan docs. Anyways, our plan has been to pay it down with our tax return next year, sell it, and then buy a car outright without financing.